FINRA Rule Requiring Licensing of Ops Personnel Approved by SEC
The SEC has approved FINRA’s modified proposal requiring licensing and continuing education for operations personnel at broker-dealers. The rule applies to certain personnel in a list of covered functions mostly focused on interfacing with customers, the handling of funds and securities, and financial operations. Covered persons include senior management with direct responsibility, any person designated by senior management with direct responsibility, and any person with authority to commit capital. Excluded persons include those in ancillary or support functions as well as internal audit, legal and compliance personnel. Currently licensed personnel need not take another exam. Current personnel must take the exam within 12 months of the rule’s effectiveness.
OUR TAKE: FINRA has staked a middle ground on this controversial rule by requiring only supervisory personnel to register. And as FINRA points out, most of these personnel likely already have their 24s or equivalent.